Lulu raises IPO offer size from 25% to 30% of shares high demand

Breaking: Lulu raises IPO offer size from 25% to 30% of shares due to high demand

Nov. 04, 2024 News

Lulu seeks to float 25%, to raise around $1.8 billion; A percentage of the shares will be allocated to employees

Abu Dhbai: To cater to significant demand from both global and regional investors, Lulu Retail today announced an increase in the size of its initial public offering on the Abu Dhabi Securities Exchange

The total Offering size has been increased to 3,098,671,605 ordinary Shares from the previously announced 2,582,226,338 ordinary Shares, i.e., 30% of its total issued share. Previously Lulu had announced that it will offer 25% of its total share for IPO.

⁠The Offer Price Range is unchanged at between AED 1.94 and AED 2.04 per Share. ⁠The total size of the Offering has been revised to between AED 6.01 billion ( $1.64 billion) and AED 6.32 billion ($1.72 billion). ⁠Based on the Offer Price Range, Lulu Retail is set to list with a market capitalisation of between AED 20.04 billion ($5.46 billion) and AED 21.07 billion ( $5.74 billion).

The additional 516,445,267 shares have been wholly allocated to the qualified investor offering – tranche two, accessible to professional investors only. The offer price range is unchanged between Dh1.94 and Dh2.04 per share. The final offer price will be announced on 6 November 2024. ⁠Trading begins on 14 Nov 2024.

Are you planning to buy Lulu’s share, clear your doubts here

Saifee Rupawala, CEO of Lulu Retail said that, “The established pan-GCC presence of Lulu Retail and our clear strategy for growth has attracted a highly diverse investor base, and we’re pleased to increase the total size of the Offering to cater to the significant level of demand received from international, regional and local investors, and the inclusion of additional cornerstone investors to the IPO.”

Adds new Corner stone investor:
Masarrah Invest, a leading investment holding company in Saudi Arabia has agreed to invest approximately AED 250 million ($ 68 million). That means now Lulu Retail has 5 Cornerstone investors.

Previously announced Cornerstone Investors (i) Abu Dhabi Pension Fund (“ADPF”), (ii) Bahrain Mumtalakat Holding Company Co. B.S.C. (“Mumtalakat”), (iii) Emirates International Investment Company LLC (“EIIC”) and (iv) Oman Investment Authority (“OIA”).